yes the book does cover the elements of Fib relationships well, both time and price.
I haven't seen Pardo's book. I have seen Chande's, it is mostly directed towards futures.
When you look at a chart and let thoughts of externals jump in, you do lose some objectivity, taking your eyes off price and the measurements of price by indicators. Most of the platitutes like "cut your losses, ride your profits, etc." should be self-evident. There is never a lack of these truisms available to one setting up his plan. The books I recommend give sufficent fodder for someone looking at the market to fill in the blanks.
Do I let externals in? yes. Should I? No. There is an never-ending battle to do what is right rather than what is wrong. I hate to admit it but I have read a number of the funnymental books, I have always walked away knowing TA is the answer. When you see so many talking about interest rates, asia, etc., it is hard to turn them off. Their opinions, we all have one, can get in the way of decisions on your entries/exits. You are in a stock, goes up 5% today, do you sell because dow is down 120 or do you wait for the exit that you have determined from your plan?
BTW: Market sentiment shows up in price movement. |
